CRM vs. INTU: Which Stock Should Value Investors Buy Now?

Core Viewpoint - The article compares Salesforce.com (CRM) and Intuit (INTU) to determine which stock is a better option for value investors, highlighting CRM's stronger valuation metrics and Zacks Rank [1]. Group 1: Zacks Rank and Earnings Outlook - CRM has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to recent revisions in earnings estimates, while INTU has a Zacks Rank of 4 (Sell) [3]. - The Zacks Rank emphasizes stocks with improving earnings estimates, making CRM a more attractive option for investors [3]. Group 2: Valuation Metrics - CRM has a forward P/E ratio of 14.90, compared to INTU's forward P/E of 18.22, suggesting that CRM is undervalued relative to INTU [5]. - CRM's PEG ratio is 0.99, indicating a favorable valuation when considering expected EPS growth, while INTU's PEG ratio is 1.28 [5]. - CRM's P/B ratio is 3.02, significantly lower than INTU's P/B of 6.07, further supporting CRM's valuation as more attractive [6]. Group 3: Value Grades - CRM has a Value grade of B, while INTU has a Value grade of D, indicating that CRM is perceived as a better value investment [6].